Technology

Grubhub launches new ordering tools that reduce fees for restaurants

The Direct Order Toolkit allows restaurants to accept Grubhub orders without paying a marketing commission.
Grubhub
Photograph: Shutterstock

Delivery provider Grubhub is introducing new tools to help restaurants accept orders without paying a marketing commission.

The Direct Order Toolkit features three new widgets restaurants can use to drive orders through their own channels: a link (for email marketing/social media), a button (for websites) and a QR code (for printed materials). 

direct order tile

Restaurants will not be charged a marketing fee for orders that come through the direct-order channels. They will still be charged a payment processing fee as well as a delivery fee if they use a Grubhub driver to deliver the order, Grubhub said.

Grubhub has offered direct-ordering links since 2013; the new elements represent an upgrade of those features, the company said.

As delivery booms amid the pandemic, restaurants have become increasingly frustrated by the fees and commissions charged by third-party providers, which can be as high as 30% or more. The charges typically include a marketing fee that covers the right to be listed on the provider’s marketplace as well as a delivery fee for the actual transportation of the meal. 

Grubhub’s marketing fees are negotiable depending on the exposure a restaurant wants. A breakdown of a typical order, provided by the company, showed a marketing fee of 15%, a delivery fee of 10% and a credit card fee of $1.10.

Restaurants are working to drive more orders to their own channels to avoid some of those fees, and delivery providers have been offering new products to help them do that. Grubhub’s Direct Order Toolkit and DoorDash’s Self-Delivery service are two recent examples. 

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